This is the first of two papers dealing with the optimal bu er allocation problem in tandem manufacturing lines with unreliable machines.We address the theoretical issues that arise when using sample-path optimization, a simulation-based optimization method, to solve this problem.Sample-path...

Depreciation is not only a representation of the loss in asset-value over time.It is also a strategic tool for management and can be used to minimize tax payments.In this paper we derive the depreciation scheme that minimizes the expected value of the present value of future tax payments for two...

Design Of Experiments (DOE) is needed for experiments with real-life systems, and with either deterministic or random simulation models. This contribution discusses the different types of DOE for these three domains, but focusses on random simulation. DOE may have two goals: sensitivity analysis...

Textbooks on Design Of Experiments invariably start by explaining why one-factor-at-a -time (OAT) is an inferior method. Here we will show that in a model with all interactions a variant of OAT is extremely efficient, provided that we only have non-negative parameters and that there are only a...

In this paper we show how techniques from response surface methodology and mathematical programming can be combined into a new sequential derivative-free approach for solving unconstrained deterministic black-box optimization problems.In this sequential derivative-free optimization approach...

Whereas Operations Research has always paid much attention to optimization, practitioners judge the robustness of the 'optimum' solution to be of greater importance.Therefore this paper proposes a practical methodology that is a stagewise combination of the following four proven techniques: (1)...

Traditionally pull production systems are managed through classic control systems such as Kanban, Conwip, or Base stock, but this paper proposes ‘customized’ pull control. Customization means that a given production line is managed through a pull control system that in principle connects...